E-commerce price war frenzy security market has also faced dilemma

Starting from yesterday, the three major online shopping malls headed by Jingdong set off a new round of price war frenzy. In Weibo, we also saw that the bosses of the two major e-commerce companies are full of gunpowder. It seems that we can deeply understand the fierce competition in the home appliance market from this “about price”. After the e-commerce price war entered the second day, we were also surprised to find that in addition to major home appliances, 3C products such as mobile phones and computers also joined the smoke-free war.

E-commerce platform to fight price war is still happening in the past six months, in fact, as early as a year ago, the security market has set off a frenzy of price cuts. The two leading companies headed by Dahua and Hikangwei have launched low-end digital hard disk recorders. The shift from high-end products to low-end areas, combined with strong R&D capabilities, has caused many small players to go bankrupt. edge. We do not comment on whether this is the company's development strategy or whether it is necessary to command the industry's great aspirations. This storm has come at a drastic price and it is somewhat unprepared.

Coincidentally, the price escalation in the security market has not ended. As security products gradually become industrialized, low-end and mid-range products become the target of small businesses. Perhaps it is not appropriate for me to make such a word, but we have found that as the monitoring front-end products become more and more popular, the barriers to entry in the security industry are getting lower and lower; even we can easily find that there are many small workshops in Shenzhen, and three or five people can form a “company. "Production surveillance cameras. The price of the product is amazingly low! After the product flowed into the market, it induced another price storm, followed by another batch of security "manufacturers." I can only say that there are too many uncontrollable factors in this market.

On the other hand, the e-commerce platform dared to fight the price war by nothing more than reducing the purchase price of channel providers or manufacturers. In order to be able to supply online shopping malls, how can manufacturers reduce product prices? Perhaps this price war is against the risk of reducing product quality and product after-sales service. The security industry is very different. In order to enrich product lines and market share, manufacturers directly introduce low-priced products. This is based on mature monitoring technologies.

The tangled sensors in the CCD and CMOS mapping security market are the core components of surveillance cameras, while CCD and CMOS are in an era of interchange. Although the two have developed side by side, after the high-definition surveillance became the mainstream trend in the past two years, the CCD can no longer play the role of the protagonist. We do not deny that the CCD has low power consumption, sharp images, and clear details; however, we should also be concerned about the large dynamic range of CMOS and its sensitivity to light.

To measure the price, CCD technology is relatively mature and easy to do. As industry insiders say, although the image quality of the CMOS sensor is not as good as that of the CCD, its cost advantage poses a great threat to the CCD. Of course, the outcome of the game between the two will ultimately be determined by the price/performance ratio. Whoever can guarantee that the better image quality is not expensive will win. Judging from current trends, the chance of CMOS winning is significantly greater. Of course, people in the industry pointed out that if the CMOS can be mass-produced, then the CCD class is only a matter of time.

The advantages and disadvantages brought by the low entry barrier security products gradually developed into the civilian market, which brought business opportunities to some IT companies. Perhaps they do not understand security, perhaps they know nothing about the monitoring, but they can also give the computer downtime, they also take into account the security monitoring project. Security entry barriers are astonishingly low, perhaps relying on security to feed the PC business may also be.

Of course, there are specializations in the industry! Not everyone can hold this seductive big cake. I also noticed that monitoring alarm products suitable for home use also appeared on the 3C stores and Taobao Mall. This has brought a lot of pressure to the civilian market of traditional security companies. It is also a security product. One main electronic category still takes the traditional route and does not know how the consumer acceptance level is. The low threshold may not be entirely a bad thing, at least raising everyone's awareness of safety precautions. As for market competition, perhaps the company has its own set of coping strategies.

The price war on the e-commerce platform reminded the author of the fierce competition in the security market a year ago. Maybe only who fell, who can unify the industry; but what are they losing? Whether it is consumer goods or security products, product prices are only one aspect of trade-offs. What is more important is quality and the most advanced technology. What businesses do is to operate with integrity, and no one is the cannon fodder for you to manipulate the market.

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